Merger Arbitrage Mondays – April 29, 2019
Merger activity decreased last week with three new deals announced and one pending deal closing. You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There were three new deals announced in the Deals in the Works section.
Deal Statistics:
| Total Number of Deals Closed in 2019 | 71 |
| Total Number of Deals Not Completed in 2019 | 4 |
| Total Number of Pending Deals |
| Cash Deals | 31 |
| Stock Deals | 15 |
| Stock & Cash Deals | 12 |
| Special Conditions | 3 |
| Total Number of Pending Deals | 61 |
| Total Deal Size | $860.06 billion |
New Deals:
- The acquisition of The KeyW Holding Corporation (KEYW) by Jacobs Engineering Group (JEC) for $815 million or $11.25 per share in cash.
- The acquisition of Entegra Financial (ENFC) by First Citizens BancShares (FCNCA) for $219.8 million or $30.18 per share in cash.
- The acquisition of Aratana Therapeutics (PETX) by Elanco Animal Health Incorporated (ELAN) for $245 million in an all stock deal. Under the terms of the agreement, upon the closing of the transaction, Aratana stockholders will receive 0.1481 share of Elanco common stock and one contingent value right (CVR) for each share of Aratana common stock. The CVR of $0.25 in cash per Aratana share shall be granted to Aratana stockholders as of the closing date and paid if capromorelin achieves certain sales levels on or before the end of 2021.
Deal Updates:
- On April 19, 2019, the FTC granted antitrust clearance for MTY Food Group’s acquisition of Papa Murphy’s (FRSH).
- April 22, 2019: In order to resolve certain specific antitrust concerns raised in the US associated with the proposed combination of Amcor (AMC.AX) and Bemis (BMS), Amcor has now entered into a binding agreement with Tekni-Plex, Inc (Tekni-Plex), for the sale of Amcor plants in Milwaukee (WI), Ashland (MA) and part of the Madison (WI) plant, for cash consideration of USD 215 million.
- On April 23, 2019, UQM Technologies (UQM) announced that its shareholders approved the merger of UQM with Danfoss Power Solutions Company.
- On April 24, 2019, Entegra Financial (ENFC) announced that its board determined that the cash consideration offer of $30.18 from First Citizens Bank was a superior proposal to the agreement with SmartFinancial (SMBK).
- On April 24, 2019, Occidental Petroleum (OXY) made public a $38 billion offer to buy Anadarko Petroleum (APC) seeking to break up a proposed takeover by Chevron (CVX).
- April 25, 2019: According to a filing, T-Mobile (TMUS) and Sprint (S) executives this week urged senior U.S. regulators to approve the proposed tie-up, saying the combined company would have the incentive to slash prices.
Closed Deals:
- The acquisition of USG Corporation (USG) by Knauf on April 24, 2019. It took 317 days for this deal to be completed.
Top 10 deals with largest spreads:
Closing
Price |
|---|
| GNW | 10/23/2016 | China Oceanwide Holdings Group Co., Ltd. (N/A) | $5.43 | $3.83 | 04/30/2019 | 41.78% | 15248.04% |
| S | 04/29/2018 | T-Mobile US, Inc. (TMUS) | $7.48 | $5.54 | 06/30/2019 | 34.99% | 206.01% |
| INUV | 11/05/2018 | ConversionPoint Technologies, Inc. (N/A) | $2.22 | $1.66 | 06/30/2019 | 33.73% | 198.60% |
| STC | 03/19/2018 | Fidelity National Financial, Inc. (FNF) | $51.05 | $42.58 | 06/30/2019 | 19.88% | 117.06% |
| MXWL | 02/04/2019 | Tesla, Inc. (TSLA) | $4.75 | $4.2 | 06/30/2019 | 13.10% | 77.09% |
| WCG | 03/27/2019 | Centene Corporation (CNC) | $297.89 | $264.87 | 06/30/2020 | 12.47% | 10.63% |
| LKSD | 10/31/2018 | Quad/Graphics, Inc. (QUAD) | $7.50 | $6.87 | 06/30/2019 | 9.17% | 53.99% |
| PACB | 11/01/2018 | Illumina, Inc. (ILMN) | $8.00 | $7.35 | 06/30/2019 | 8.84% | 52.06% |
| ONCE | 02/25/2019 | Roche Holding AG (RHHBY) | $114.50 | $107.87 | 06/30/2019 | 6.15% | 36.18% |
| BXG | 03/04/2019 | BBX Capital Corporation (BBX) | $16.00 | $15.17 | 05/15/2019 | 5.47% | 124.81% |
List of all pending deals:
The list of all pending deals is only available to InsideArbitrage Premium and Plus members.
Disclaimer: I hold long positions in Red Hat (RHT), Celgene (CELG), Bristol-Myers Squibb (BMY) and Finisar (FNSR). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.
Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter@asifsuria
